As reported in a recent filing to a California federal court on December 3rd, Roger Ver, also known as "Bitcoin Jesus," has urged a United States judge to dismiss a case alleging he committed tax evasion when selling millions of dollars in Bitcoin. According to Ver’s lawyers, the case is unconstitutional due to the Internal Revenue Service’s (IRS) exit tax for those who renounce their US citizenship with more than $2 million in assets being "inscrutably vague."
The Exit Tax and Its Unconstitutionality
The IRS’ exit tax aims to ensure that US citizens pay all required taxes before renouncing their citizenship and withdrawing from the country’s tax system. However, Ver’s lawyers argue that this tax violates both the Apportionment Clause and the Due Process Clause of the Constitution. They further claim that the charges against Ver rely on provisions of the U.S. tax laws that were "inscrutably vague" as to their application to digital assets like Bitcoin.
Key Arguments Made by Roger Ver’s Lawyers
In their filing, Ver’s lawyers presented several key arguments in support of dismissing the case:
- Unconstitutionality of Exit Tax: The exit tax at issue violates both the Apportionment Clause and the Due Process Clause of the Constitution.
- Vagueness of U.S. Tax Laws: The charges against Ver rely on provisions of the U.S. tax laws that were, at all relevant times, "inscrutably vague" as to their application to digital assets like Bitcoin.
- Unlawful Interrogation: Prosecutors had "unlawfully" interrogated one of Ver’s lawyers and ignored crucial documents.
- Lack of Intent: Ver claimed that he had no intent to file a fraudulent tax return.
Background on Roger Ver’s Case
On April 30th, the US Attorney’s Office in Los Angeles arrested Ver in Spain and charged him with tax evasion and fraud, alleging that he dodged more than $48 million in taxes by failing to report capital gains on the sale of tens of thousands of Bitcoin for $240 million in cash. However, Ver claimed that there were several impediments to submitting an appropriate exit tax request, including a lack of liquid markets for Bitcoin at the time.
Consequences and Related Developments
If found guilty on all counts, Ver faces a maximum sentence of 30 years in federal prison. This case has sparked discussions within the crypto community, with some calling out the Department of Justice (DOJ) for targeting Roger Ver a decade after he left the US.
Roger Ver’s Background and Involvement in Crypto
Ver was one of the earliest advocates of Bitcoin, buying it in droves in 2011 when it was under $1 and acting as an evangelist for digital assets. In 2017, he emerged as a major Bitcoin Cash (BCH) proponent after the Bitcoin network underwent a hard fork. However, Ver was later embroiled in a scandal with CoinFlex, which claimed that he owed the platform $47 million in USD Coin (USDC).
Roger Ver’s Previous Convictions and Sentence
In 2002 and 2003, Ver spent 10 months in federal prison in the US for selling explosives on eBay.
Conclusion
The case against Roger Ver has sparked debates within the crypto community regarding the constitutionality of the IRS’ exit tax and the application of U.S. tax laws to digital assets like Bitcoin. As this story continues to unfold, it remains to be seen how the judge will rule on the dismissal of the case.
References
- CourtListener: Roger Ver’s Lawyers Argue Case Against Him is Unconstitutional
- Related Article: [Crypto veterans call out DOJ for targeting Roger Ver a decade after he left US](link to related article)
